Best Company sells office supplies. The following information summarizes Best's operating activities for 2012:
Utilities for store Rent for store Sales commissions Purchases of merchandise Inventory on January 1,2012 Inventory on December 31,2012 Sales revenue $6,000$8,000$4,500$54,000$30,000$20,500$108,000
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Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below:
Sales revenue
Cost of goods sold Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Selling expenses Sales commissions General expenses Rent expense Utilities expense Total operating expenses Net income/(loss)
Definitions:
Term Deposits
A type of bank deposit that is held at a financial institution for a fixed term or period, where the money can be withdrawn only after the term ends or by giving a predetermined notice.
Purchase Date
The date on which a buyer acquires possession or ownership of an item or investment.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.
Full Amount
The total quantity or extent of something, typically referring to the complete sum of money owed or due.